Mahindra Logistics Ltd Management Discussions

Manufacturing growth, supported by the production linked incentive ("PLI") scheme, infrastructure spending, and consumption-Led sectors such as FMCG, pharma and telecom, continued to drive Logistics demand. Robust SUV demand and EV adoption across the automotive sector, aLongside steady farm sector performance, continued to support freight and distribution requirements.

The Auto and Farm sectors recorded ~13% YoY growth, with domestic tractor sales reaching ~10 Lakh units (~19% YoY) and four wheeler EV sales rising ~84% to ~2 Lakh units. Manufacturing contributes ~16-17% of GDP and employs 27+ Mn people, with Government initiatives such as Make-in-India and PLI targeting a 25% GDP contribution over the medium term.

Beyond voLume growth, suppLy chains across the sector are growing increasingly complex, driven by higher model variants, greater component LocaLisation and tighter turnaround expectations from OEMs. Customers are prioritising Logistics partners capabLe of deLivering integrated soLutions across inbound, pLant and outbound distribution. SustainabiLity considerations, spanning fueL efficiency, route optimisation and aLternative fueL adoption, are increasingLy shaping sourcing decisions. Together, these trends point to sustained demand for technoLogy-enabLed, scaLabLe Logistics soLutions.

Indias e-commerce market is expected to witness a ~15% CAGR and reach 30 Lakh crores by 2030. Q-commerce is growing at ~70-80% annuaLLy, driving demand for hyperLocaL fuLfiLment, dense Last-miLe networks, and dark stores (~6,000+). Non-grocery categories are growing ~1.6x faster than grocery, indicating broader use case expansion.

The rapid evoLution of e-commerce and q-commerce is reshaping Logistics requirements, with demand shifting sharpLy towards speed, reLiabiLity and proximity to the end consumer. Companies are increasingLy investing in micro-fuLfiLment centres and data-driven demand forecasting to improve service LeveLs and manage costs. The sector is aLso seeing higher experimentation in fuLfiLment modeLs, incLuding hybrid dark stores and shared infrastructure. As deLivery timeLine expectations tighten, Logistics capabiLities are emerging as a key differentiator for pLatform competitiveness.

Indias consumer goods sector is expected to grow at 6-8% in 2025-26, supported by rising incomes, urbanisation, and expanding demand in Tier 2 and Tier 3 cities. PLI aLLocations of 1,200 crores (food processing) and 1,000 crores (white goods), aLong with GST reductions on consumer products, are strengthening demand and domestic manufacturing.

The sector continues to benefit from structuraL demand drivers, incLuding growing appetite for premium products, increased brand penetration, and consumption-Led growth in non-metro regions. SuppLy chains are evoLving to support wider product assortments, faster repLenishment cycLes, and improved sheLf avaiLabiLity across channeLs. Companies are pLacing greater emphasis on agiLe distribution networks that baLance cost efficiency with service responsiveness. The growing integration of digitaL tooLs across saLes forecasting and inventory pLanning is further influencing Logistics strategy across the sector.

Pharmaceutical supply chains are becoming more specialised, with heightened focus on compliance, traceability and temperature-controlled logistics. Rising domestic consumption and export volumes are driving demand for reliable, end-to-end logistics solutions capable of ensuring product integrity across geographies. Customers are demanding greater visibility and accountability across the value chain, supported by digital tracking and regulatory reporting capabilities. These trends reinforce the need for robust logistics infrastructure and deep domain expertise in the pharma segment.

India is the worlds second-largest telecom market with ~120 crore subscribers and ~100 crore internet users. Continued 5G rollout and fibre expansion are supporting ~7% CAGR with market size projected at 6.7 Lakh crores by 2034.

The sectors expansion is generating sustained logistics demand across network equipment, devices, and infrastructure deployment. Ongoing investments in digital connectivity are producing frequent network upgrades and technology refresh cycles, reinforcing the need for time-sensitive, secure logistics solutions. Supply chains are also adapting to higher localisation of manufacturing and assembly As the sector evolves, logistics partners capable of managing complex, nationwide distribution and installation requirements will be increasingly central to its growth.

Global growth remains moderated, with output projected at 2.7% in 2026 and 2.9% in 2027, below pre-pandemic levels. Although headline inflation eased to ~3.1%, persistently elevated food, energy, and housing costs continued to weigh on real incomes across economies. Elevated sovereign debt levels, accelerating trade fragmentation, and geopolitical conflicts in the Middle East and Eastern Europe introduced significant volatility into energy prices, freight costs and global supply chains.

Against this backdrop, trade dynamics shifted towards near-shoring and resilience-led network design. Businesses increasingly deployed AI-driven optimisation, autonomous logistics, and multinode supply chains, hastening the transition from globalisation to strategically managed trade.

The global operating environment remains in flux, shaped by heightened macroeconomic and geopolitical uncertainty. Policy divergence across major economies, compounded by tighter financial conditions, has continued to influence capital flows and business sentiment. Structural shifts, spanning digitalisation, energy transition and supply chain realignment, are simultaneously reshaping global trade patterns at a fundamental level. Companies are increasingly focused on building agility and resilience to manage disruptions while positioning themselves for long-term, sustainable growth.

Indias GDP growth for 2025-26 is estimated at 7.4%, supported by strong consumption and investment. Retail inflation averaged 1.7% during April-December 2025, reflecting easing food and fuel prices. 2025-26 saw public capital expenditure spend of 11 Lakh crores, and Rs. 12.2 Lakh crores proposed for 2026-27 reaffirmed the Governments commitment to an infrastructure-led growth model.

Indias economic fundamentals remain resilient, underpinned by a stable policy environment and sustained government focus on capital formation. Private sector investment sentiment improved further, supported by rising capacity utilisation and easing input cost pressures. Structural reforms spanning taxation, insolvency resolution and manufacturing policy are steadily reinforcing Indias long-term growth potential.

These macroeconomic conditions are translating directly into logistics sector expansion. Infrastructure programmes such as PM GatiShakti, Dedicated Freight Corridors, Multimodal Logistics Parks and inland waterways are reducing transit times and lowering the cost of logistics across the country. India is emerging as a preferred destination for supply chain investment, reinforcing domestic logistics demand across sectors. Together, these dynamics are creating a strong structural foundation for sustained growth in integrated logistics and supply chain services.

Indias logistics sector is in a period of sustained expansion, driven by infrastructure investment, policy reform and accelerating technology adoption, which are collectively improving the efficiency and connectivity of logistics networks. Demand for premium, Grade A warehousing is rising sharply, supported by an influx of institutional capital and investment- grade assets from developer-backed platforms, reflecting a market that is steadily moving towards greater maturity and organisation.

Despite this momentum, the sector remains highly fragmented. Road transport remains dominant (60%+ of all freight), while rail, air and waterways are steadily gaining share through targeted policy support. Demand for Grade A & B warehousing, multimodal integration, AI-driven optimisation, and digital freight platforms continue to grow. In terms of the organised segment, the size and growth are given in the table below:

The sector is at an inflection point, driven by policy reforms, infrastructure investments, and rapid digitalisation. With initiatives like PM Gati Shakti, National Logistics Policy, and an increasing shift toward green logistics, the industry is moving toward a more integrated, cost-efficient, and sustainable ecosystem. As the sector matures, a transition from traditional transportation and warehousing models to high-value, technology-driven integrated logistics solutions is expected, positioning India as a global logistics hub.

Technology is reshaping logistics operations across the value chain. AI-driven optimisation, automated warehousing and predictive analytics are streamlining supply chain execution, while end-to-end visibility, IoT-enabled tracking and digital freight matching are fast becoming baseline expectations rather than differentiators.

Logistics costs declined to ~8-9% of GDP in 2026 from ~13-14% historically, reflecting improved infrastructure and digitalisation. Continued Government focus aims to reduce costs further in the coming years.

Digital enablement remains a central pillar, with platforms such as PM GatiShakti and ONDC driving greater transparency, interoperability, and standardisation across supply chains. This is supporting enhanced visibility, improved planning, and faster decision making for both customers and logistics service providers. The policy emphasis on private sector participation is encouraging the development of organised, technology- enabled logistics solutions and attracting long-term capital into the sector.

PLI-led growth in manufacturing and exports is reinforcing logistics intensity and demand for integrated, value-added services. Collectively, these reforms target a reduction in Indias logistics costs to 6-8% of GDP, alongside meaningful improvements in service reliability and cost competitiveness.

Over the medium to long term, the cumulative impact of these initiatives is expected to enhance Indias position as a globally competitive manufacturing and supply chain hub, supporting sustained growth in organised logistics.

The logistics industry is experiencing a paradigm shift, driven by rapid advancements in technology, changing consumer expectations, strategic Government initiatives to modernise infrastructure, and the ongoing formalisation of the sector As Indias logistics ecosystem becomes increasingly integrated and efficient, several transformative trends are emerging that will define the future of this industry.

Rising supply chain complexity, compliance requirements and customer expectations are accelerating consolidation around organised logistics players. Organised providers enable standardised processes, technology-driven visibility and the operational scale to serve customers across geographies. GST, e-way bills and digital freight platforms continue to tilt the competitive balance in favour of compliant, system-led operators.

Q-commerce is growing at ~70-80% annually and already accounts for ~10% of e-retail spend, with over two-thirds share of e-grocery orders. This growth is driving demand for hyperlocal fulfilment centres, dense last-mile networks and AI-enabled route optimisation. As Q-commerce expands beyond grocery into broader categories, delivery frequency is rising and urban logistics requirements are intensifying.

Indias freight mix remains road heavy at ~60-65%, despite rail and waterways offering materially lower per tonne transport costs. Road-led efficiency gains are largely exhausted, making modal shift a critical lever for further cost reduction across the logistics chain. Government investments in Dedicated Freight Corridors, multimodal logistics parks and inland waterways are accelerating this structural transition.

Geopolitical tensions, trade policy volatility and supply chain fragmentation are prompting companies to prioritise resilience over cost optimisation. India is emerging as a preferred supply chain hub under diversification strategies such as China+1. This shift is driving incremental demand for freight-forwarding logistics, bonded warehousing and resilient, diversified network design.

Indias organised B2B people mobility market is valued at 10,000 crores, with a 7-8% CAGR. The segment is undergoing structural formalisation, driven by stricter compliance norms, enhanced duty of care requirements, and rising focus on employee safety and experience. Enterprises are increasingly prioritising mobility providers with strong technology platforms, transparent pricing models, and nationwide service capabilities. Together, these trends are expected to support steady growth for organised mobility players offering integrated, scalable and digitally-enabled solutions. Corporate travel recovery, hybrid work models, tightening compliance requirements and sustainability mandates are reinforcing demand for organised, technology-enabled mobility solutions.

MLL operates in this space through Alyte, providing B2B mobility services to IT, ITeS, BFSI, BPO, consulting, e-commerce and manufacturing sectors, as well as B2C airport mobility at four major airports in India.

Demand for premium and subscription-basec mobility is rising as customers prioritise reliability comfort and predictable pricing. Corporate users and airport travellers are shifting towards pre-bookeo fixed-fare models with dedicated fleets and highei service standards.

I ndias air passenger traffic reached ~20 crores passengers in 2025-26, supported by sustained growth in business travel and regional connectivity. The expansion of airport infrastructure to 160+ airports is generating downstream demand for organised airport transfer and corporate mobility services.

Urban mobility is evolving toward integrated first and last-mile solutions combining cabs, metros, shuttles and EVs through Digital MaaS platforms. These solutions improve travel efficiency, reduce congestion and enhance customer experience across urban transport ecosystems.

Technology-led platforms are reducing dependence on intermediaries by enabling direct trip management, route optimisation and driver engagement. Subscription-based and zero-commission models are improving cost efficiency while enhancing driver retention and service reliability.

EV adoption in mobility is accelerating due to rising fuel costs, Government incentives and corporate ESG mandates. Improving charging infrastructure and battery performance are enabling wider EV deployment across corporate transport, airport mobility and ride-hailing services.

High-value sectors such as consumer durables, apparel and chemicals present strong growth opportunities for 3PL expansion, given their need for specialised handling and secure infrastructure. These segments support higher margins and benefit from integrated warehousing, transportation and value-added services.

Accelerating outsourcing of logistics by manufacturers and brands is creating sustained demand for organised 3PL players. Customers are seeking end-to-end solutions that reduce complexity, improve service consistency and deliver greater cost visibility. As supply chains become more fragmented and product portfolios more complex, demand for customised logistics solutions is expected to rise. This structural shift underpins long-term growth in integrated warehousing, transportation and value-added services across sectors.

Indias e-commerce market is expected to grow at ~15% CAGR and reach 30 Lakh crores by 2030, while q-commerce is scaling faster at ~70-80% annually. Together, these segments are generating sustained demand for fulfilment capacity, last-mile delivery and urban logistics infrastructure.

This growth is fundamentally reshaping logistics infrastructure requirements, particularly across urban and semi-urban markets. Higher order frequencies and shorter delivery windows are driving investments in fulfilment automation, micro-distribution centres, and agile last-mile networks. Businesses are also focusing on balancing speed with cost efficiency to ensure sustainable unit economics. These trends are expected to structurally increase logistics intensity per unit of consumption.

AI, IoT and automation are materially improving logistics efficiency, enabling real-time tracking, network optimisation, safety monitoring and cost reduction. Digital tools are also enhancing productivity across procurement, finance, HR and business development, supporting margin expansion and scalable growth.

Technology has become central to logistics competitiveness, enabling data-driven decision making and operational visibility. Advanced analytics and AI-led tools are enabling predictive maintenance, demand sensing, and proactive exception management. Automation is further improving consistency, safety, and scalability in operations. Over the medium term, digital transformation is expected to drive better asset utilisation, enhanced customer experience, and improved return on invested capital.

Government initiatives such as PM Gati Shakti, Dedicated Freight Corridors, Sagarmala and the NLP are accelerating adoption of multimodal logistics. Integrated road rail port networks enable lower costs, improved reliability and higher value logistics solutions.

Expanding multimodal infrastructure is facilitating a structural shift towards more efficient freight movement across the country. Integrated planning across road, rail, coastal, and inland waterways is reducing dependency on single transport modes, improving resilience against disruptions and strengthening cost competitiveness for long- haul and bulk freight. The growing adoption of multimodal solutions is also supporting sustainability objectives through lower emissions intensity.

Global supply chain diversification and the China+1 strategy are strengthening Indias cross-border trade flows. This is opening up opportunities in high-value cargo segments such as pharmaceuticals and specialty chemicals, reinforcing growth in freight-forwarding and international logistics services.

As global trade realigns, the demand for reliable cross-border logistics and freight management is growing. Customers are seeking partners with strong regulatory expertise, international network coverage, and digital visibility across shipments, reinforcing the premium placed on service quality and regulatory compliance. These dynamics are expected to support medium-term growth in international freight-forwarding and value-added trade services.

As enterprises focus on safety, compliance, and efficiency in employee transportation, especially in IT, BFSI, and industrial sectors, there is rising demand for organised, managed mobility solutions. Urban workforce growth and hybrid work models are driving demand for flexible, technology-enabled commute solutions.

Ongoing geopolitical developments have increased uncertainty across global supply chains, prompting frequent re-routing and contingency planning. Such disruptions can lead to uneven capacity availability extended lead time and cost uncertainty across key trade corridors. Businesses are therefore placing greater emphasis on supply chain resilience, diversification of sourcing locations, and enhanced visibility. For logistics service providers, this environment requires agility in network design and proactive risk management capabilities.

Human capital remains a critical success factor in logistics operations. Rising competition for skilled and semi-skilled labour has increased recruitment and retention challenges. Regulatory requirements around safety, compliance and working conditions add further complexity to workforce management. Companies are responding with greater investment in training, productivity tools and employee engagement initiatives to mitigate labour-related risks and safeguard operational continuity.

Customers across sectors remain focused on cc optimisation, leading to heightened sensitivity on logist pricing. Simultaneously, variable input costs such as ft utilities, and subcontracting, continue to exert pressu on operating margins. Balancing competitive prici with sustainable profitability demands disciplined co management and continuous improvement in operatio efficiency Over time, differentiated service offerings a value-led solutions are expected to play a greater role supporting pricing stability.

The growing trend of logistics insourcing among lar e-commerce players reflects their drive for tighter cont over delivery speed and customer experience. This h increased competition for third-party logistics provide particularly in high-volume, standardised services. response, service providers are sharpening their focus specialised, asset-light and technology-enabled solutio where outsourcing continues to deliver clear strate value. Differentiation through service quality flexibility, a scalability remains key in this evolving landscape.

MLL provides an integrated portfolio of logistics services encompassing warehousing, distribution, full truck load and part truck load transportation, freight-forwarding, and enterprise mobility solutions, delivered through five distinct business lines. Operating on shared infrastructure and capabilities, we serve a diverse customer base across automotive, engineering, consumer goods, pharmaceuticals, telecom, retail and e-commerce sectors.

We manage over 20 Mn sq. ft of warehousing across India, including multi-user, built-to-suit warehouse facilities, network hubs, and cross-docks. Our in-factory stores and linefeed operations are active across 40+ manufacturing sites. Our fleet of 1,400+ eDeL EVs enable Last-Mile Delivery and our express network serves over 6,000 locations. Supported by 1,800+ trusted business associates, we serve leading domestic and global clients across sectors.

Lords Freight (India) Private Limited is a wholly owned subsidiary of MLL. It provides international freight-forwarding, customs brokerage, project cargo and air charter services for exports and imports. It operates a strong global agent network across China, South Korea, Southeast Asia and Western Europe, delivering end-to-end freight-forwarding solutions across ocean and air freight, customs clearance and warehousing.

V-Link Freight Services Private Limited is a wholly owned subsidiary of MLL engaged in supply chain management services, including air charter operations. The business complements MLLs freight and project logistics offerings.

2x2 Logistics Private Limited is a 55% subsidiary of MLL and provides specialised outbound logistics solutions for OEMs in the automotive sector. It operates 200+ vehicle carriers, transporting finished vehicles from manufacturing locations to stockyards and distributors, with MLL as its primary customer.

MLL Express Services Private Limited is a wholly owned subsidiary of MLL. It provides B2B express logistics services under the brand name Rivigo by Mahindra Logistics.

MLL Mobility Private Limited is a wholly owned subsidiary of MLL and operates with the Alyte brand name. It provides corporate mobility solutions across sectors such as IT, ITeS, BFSI, Manufacturing and BPOs, and also provides B2C mobility solutions. It operates a growing EV fleet of over 150 owned vehicles, supporting sustainability-led mobility solutions.

ZipZap Logistics Private Limited, operating under the brand Whizzard, is a 64.1% subsidiary of MLL. Its full stack digital platform and micro distribution centres covering 4,000+ pin codes strengthen MLLs EV-based last-mile delivery capabilities across e-commerce and q-commerce.

Seino MLL Logistics Private Limited is a joint venture between MLL and Seino Holdings of Japan, providing integrated logistics solutions to Japanese customers in India. The joint venture combines MLLs domestic network with Seinos customer expertise, with a focus on technology, process excellence and sustainability.

MLL aims to become Indias #1 logistics services provider, delivering superior customer experience through technology- led solutions and a passionate team. The Companys strategic priorities include scaling contract logistics, turning around express operations, strengthening operational excellence, and building differentiated technology capabilities. Further, MLL will continue to invest selectively in capabilities and strategic assets to support long-term growth. The focus remains on building a scalable, asset-right, technology-enabled platform that delivers differentiated customer solutions while improving return profiles.

Growth in contract logistics will be driven through higher quality revenue, increased wallet share with existing customers and targeted niche capability development. Focus areas include integrated solutions, value-added services and improved utilisation of Grade A warehousing to enhance margins and asset efficiency.

The near-term priority for B2B express is restoring profitability through network efficiency, lane optimisation and improved service reliability. Targeted sales expansion in underpenetrated geographies and higher margin segments, combined with disciplined cost management, is expected to drive the business towards net positivity.

Across last-mile delivery, freight-forwarding and mobility solutions, the Companys strategy is focused on enhancing operational efficiency, leveraging technology, and strengthening execution excellence. Continued investments in digital platforms, network optimisation, and sustainable mobility are expected to support scalable growth while maintaining cost discipline and service reliability.

Operational excellence remains central to customer retention and value creation, with emphasis on service quality, cost discipline and network reliability. Initiatives across freight optimisation, shrinkage reduction and process standardisation are strengthening execution consistency across businesses.

Technology and AI are being embedded across operations to improve safety, visibility and decision making, including real-time tracking, network design and intelligent automation. Digitisation across corporate functions is expected to improve productivity, scalability and margin resilience over the medium term.

Customers across logistics segments prioritise a mix of pricing, reliability, speed, network reach, and real-time visibility, varying by use case (contract logistics, express, last mile, etc.). MLLs success is thus driven by our capability of providing these services. Additionally, a high-margin segment mix, strong safety standards, and tech-enabled operations are critical to improving competitiveness and margins. We remain focused on delivering superior customer experience through a tech-enabled, integrated logistics model that enhances agility, efficiency, and reliability.

We serve over 6,000 locations through our express network and operate 280+ stations for last-mile delivery, enabling deep market penetration and strong B2B and B2C fulfilment capabilities across India.

We operate 20+ Mn sq. ft. of warehousing space across India, supporting scalable, efficient and high-quality storage and distribution solutions.

With a presence across 50+ global trade lanes and 10,000+ ocean freight TEUs handled annually, we offer strong cross-border logistics and international supply chain integration.

Our network of 1,800+ business associates nationwide ensures flexibility, scalability and consistent service delivery across operations.

A dedicated Safety, Security and Loss Prevention (SLP) and Vigilance function drives uniform standards, proactive risk management and consistent, high- quality operations across all locations.

Our in-house technology platform, LogiOne, delivers real-time vehicle tracking, KPI monitoring and enhanced customer visibility through advanced analytics and configurable dashboards.

Consistently strong Net Service Levels reflect our commitment to high performance and customer-centric execution.

We operate in a highly fragmented yet rapidly evolving market, one poised for transformational change that impacts millions. Yet, we are living through a period of ongoing conflict and instability, which has seen the world facing continuous disruptive challenges. This dynamic landscape reinforces our commitment to strengthening our risk governance framework, ensuring business sustainability while driving inclusive growth.

Our robust organisational framework enables businesses to anticipate, assess, and report risks effectively, fostering a proactive and future-ready enterprise.

Our Board plays a pivotal role in shaping, developing, and reviewing our risk management framework. A risk register and heatmap are presented to the Boards Risk Management Committee for review and approval twice per year This comprehensive approach includes policies, processes, and mechanisms to proactively identify, manage and mitigate risks within acceptable tolerances while driving growth. By defining our risk appetite, prioritising mitigation strategies, and implementing structured processes, the Board ensures resilience and agility.

The Company is committed to maintaining effective internal control systems commensurate with the size and complexity of its operations. These controls support MLLs compliance and financial reporting objectives and are implemented through defined policies and procedures, which are periodically reviewed to remain aligned with evolving business requirements.

Internal control processes are regularly evaluated by internal and statutory auditors, with recommendations shared with process owners for continuous strengthening and timely implementation. The Company also invests in IT-enabled automation to enhance control effectiveness and minimise errors. The Audit Committee oversees the adequacy of the internal control framework and monitors the implementation of audit recommendations.

As the Company continues to scale and evolve, the Companys ability to grow is deeply tied to the strength, agility and diversity of its people. Our focus has been on strengthening the foundations that enable employees to perform, grow and contribute meaningfully whether through safer workplaces, stronger talent pipelines or clearer career pathways.

Rather than approaching people practices as isolated interventions, the emphasis has been on creating an ecosystem where opportunity, capability and inclusion reinforce one another. This includes expanding access to talent from newer geographies, strengthening leadership readiness within the organisation, and ensuring that our workplaces from corporate offices to operational sites uphold a culture of dignity and respect. Across the year, several initiatives contributed to advancing this agenda, helping the Company build a workforce that is both future-ready and grounded in shared values.

Creating safe and respectful workplaces remains a core priority A comprehensive digital POSH learning module was rolled out for white collar employees, reaching ~3,200 employees with an 80% completion rate. To extend awareness to operational environments, Train-the-Trainer workshops were conducted for Business HR teams across four regions, enabling on-ground sensitisation sessions. These in-person programmes covered 2,500+ frontline employees across 60%+ of identified sites, reinforcing consistent standards of workplace dignity and safety.

Mahindra Logistics continued to invest in early career talent through the Logistics Accelerated Management Programme (LAMP). During the year, 28 management trainees were onboarded across functions, with focused outreach to Tier 3 and 4 campuses. The structured one-year programme combines functional exposure with cross business learning, strengthening the leadership pipeline while enhancing workforce diversity and long-term capability.

Hiring agility was enhanced through the removal of the mandatory six-month probation period for selected grades, enabling faster integration of new hires. A structured Account Delivery Manager (ADM) pipeline was established, with five veterans onboarded into ADM roles to strengthen operational leadership. Internal mobility was supported through revised transfer guidelines, enabling 120+ employees to take up cross functional roles earlier in their tenure while aligning compensation movements with standard cycles.

As of 31 March 2026, the Company had 3,988 employees on permanent payroll.

Capability building focused on faster role readiness, continuous performance conversations and leadership development. A structured functional onboarding journey was introduced, complemented by a central onboarding programme that received an average feedback score of 4.75 out of 5. Performance management under the Unnati framework recorded 24,300+ goal check ins, enabling regular feedback and alignment.

Learning continued to enable operational resilience, with 85%+ of employees participating in learning programmes and generating 39,000+ learning hours. MLL Ki Paathshala reached 3,700+ employees, contributing ~26,100 learning hours through role specific training. Certification programmes, including First Time Managers programme and HR 2.0 strategic people partner programme, strengthening managerial capability. Employees also participated in Group level initiatives such as She Is on the Rise and HR Unnati.

Leadership programmes such as LEAP and FLEX continued to build internal leadership strength. LEAP has graduated 16 leaders to date, many of whom have transitioned into broader roles. FLEX enabled 157+ employees, with 61 participants progressing into ADM and higher roles. Behavioural capability was reinforced through CAB (Collaboration, Agility and Boldness) sessions conducted across 35 cities, reaching 329 employees. The learnings were further cascaded down across teams to drive organisation-wide adoption.

Employee contributions were recognised through structured reward mechanisms, with 800+ employees receiving formal awards. Long Service Awards honoured 700+ employees, while 20+ employees received the MD & CEO Spot Award for exceptional contributions aligned to Company values.

As Mahindra Logistics continues to grow and diversify, sustained focus will remain on leadership development, skill enhancement and internal mobility By aligning people practices with evolving business priorities, the Company aims to build a motivated, capable and future-ready workforce that supports long-term growth and operational excellence.

The financial statements were prepared in compliance with the requirements of the Companies Act, 2013. We adopted the Indian Accounting Standard (IND AS) from 1 April 2016. The consolidated financial statements were prepared in compliance with applicable IND AS 110 and are presented in a separate section.

The authorised share capital of the Company is Rs. 200 crores divided into 20,00,00,000 equity shares of Rs. 10 each. Our paid-up capital as at the end of the year was at Rs. 99.22 crores compared to Rs. 72.13 crores as at the end of the previous year. The increase is attributed to the issue of 2,70,91,013 equity shares on account of issuance of shares under the Rights issue and exercise of options granted under our Employee Restricted Stock Unit Plan 2018 during the year

The retained earnings i.e., surplus in the statement of profit and loss as on 31 March 2026, was at Rs. 520.66 crores compared to Rs. 494.42 crores as on 31 March 2025.

Borrowings as on 31 March 2026, were Nil as compared to Rs. 150 crores as on 31 March 2025.

The property, plant and equipment and other intangible assets, including RoU asset, CWIP and intangible assets under development amounted to Rs. 783.85 crores as on 31 March 2026, compared to Rs. 638.09 crores as on 31 March 2025. We follow the asset-right model to execute our operations and the capital expenditure of Rs. 65.19 crores incurred during the year was mainly on account of the purchase of Material Handling Equipment & Storage Racks for warehousing services and Trucks for Pro-Trucking business. The addition to Right of Use Assets under IND AS 116 is Rs. 370.34 crores.

Trade receivables as on 31 March 2026, were at Rs. 509.65 crores, which amounted to 8.99% of our revenue from operations compared to Rs. 461.81 crores as on 31 March 2025, which amounted to 9.21% of the revenue from operations.

Revenue from operations increased to Rs. 5,671.98 crores in the year ended 31 March 2026, from Rs. 5,012.56 crores in the year ended 31 March 2025, with 13.16% increase.

Other income mainly comprises interest income from bank deposits/security deposits and interest on income tax refund. There is increase in other income from Rs. 11.30 crores in the year ended 31 March 2025, to Rs. 11.50 crores in the year ended 31 March 2026.

Employee benefit expenses include salaries and wages, including bonus, contribution to provident and other funds, gratuity, staff welfare and so on. Employee benefit expense as a percentage of revenue from operations decreased from 5.84% in previous year to 5.73% in the current year. The increase in depreciation and amortisation expenses is due to the impact of capitalisation of assets done in the current year and increase in amortisation of rentals under IND AS 116. Pursuant to new Labour Codes becoming effective, MLL has recorded incremental impact on retiral benefits of Rs. 4.76 crores, which is presented as Exceptional item.

Operating expenses were at 85.75% of revenue from operations in the current year as compared to 85.83% in the previous year It mainly includes freight and related expenses, labour and related expenses, warehouse and related expenses, rent, among others. Profit before tax for the year ended 31 March 2026, was at Rs. 58.20 crores compared to Rs. 58.18 crores in the year ended 31 March 2025. Profit after tax is at Rs. 43.02 crores in the year ended 31 March 2026, compared to Rs. 43.50 crores in the year ended 31 March 2025. This translated into diluted earnings per share at Rs. 4.78, compared to Rs. 5.80 in the preceding fiscal year.

Gross Margin increased to 10.29% as compared to 9.90% in 2024-25. EBITDA also witnessed a significant growth, reaching Rs. 352.94 crores a growth of 18.74% compared to Rs. 297.24 crores.

Debt-Equity Ratio decreased from 0.21 times in the previous year to nil in the current year, due to the repayment of all borrowings during the year.

Return on Net Worth Ratio declined from 6.33% to 3.95% majorly due to lower net profits (increase in operating expense) and increased net worth through fresh capital infusion.

The consolidated financials include financials of our six subsidiaries i.e., Lords Freight (India) Private Limited, 2x2 Logistics Private Limited, MLL Mobility Private Limited, MLL Express Services Private Limited, V-Link Freight Services Private Limited, and ZipZap Logistics Private Limited and one Joint Venture i.e. Seino MLL Logistics Private Limited.

Consolidation of MLL and its six subsidiaries financial statements is done on a line-by-line basis by adding together items like assets, liabilities, income, and expenses, after eliminating intercompany transactions, in accordance with IND AS 110 on consolidated financial statements. Equity method of consolidation is used for the Joint Venture entity. The consolidated financial statements are presented in a separate section.

In 2025-26, MLL experienced robust consolidated revenue growth, reaching Rs. 6,999.30 crores, up 14.65% from the previous years revenue of Rs. 6,104.83 crores. The core 3PL segment witnessed a positive momentum of 15.74% growth, Freight-Forwarding segment showed growth of 13.90%, Express segment showed a growth of 25.08% and Mobility segment showed a growth of 22.41%. Gross Margin increased moderately to 10.02% from 9.35% in 2025-26. EBITDA was Rs. 376.47 crores, up from Rs. 284.05 crores in 2024-25. Consequently, PAT increased to Rs. 10.57 crores from Rs. (30.00) crores. Profit/(loss) after tax for the year attributable to non-controlling interest stood at Rs. 8.28 crores as against Rs. 5.85 crores in the previous year.

In 2025-26, 2X2 Logistics reported a revenue of Rs. 111.21 crores, an increase of 30.73% from Rs. 85.07 crores in the previous fiscal year EBITDA and PAT registered a robust growth of 25.49% and 17.83%, respectively, reaching the level of Rs. 28.31 crores and Rs. 14.41 crores respectively in 2025-26, from Rs. 22.56 crores and Rs. 12.23 crores in 2024-25. We enhanced our overall fleet during the year under review, resulting in growth in EBITDA and PAT.

Business revenue grew 14.97% YoY, supported by strong volume growth. In 2025-26, Lords reported a revenue of Rs. 343.46 crores from Rs. 298.73 crores in the previous fiscal year. EBITDA and PAT were Rs. 10.44 crores and Rs. 7.35 crores respectively in 2025-26, from Rs. 7.45 crores and Rs. 6.39 crores in 2024-25.

The Last-mile delivery business demonstrated significant profitability improvements. In 2025-26, Whizzard reported a revenue of Rs. 219.71 crores, an increase of 27.02% from Rs. 172.97 crores. EBITDA and PAT were Rs. 6.06 crores and Rs. 4.91 crores respectively in 2025-26, from Rs. 1.70 crores and Rs. 0.78 crores in 2024-25.

MLL Express increase in profitability is driven by continued focus on cost efficiency, yield improvement and volume growth. In 2025-26, MLL Express revenue was Rs. 459.16 crores, a 26.20% growth from Rs. 363.83 crores in the previous fiscal year EBITDA and PAT were Rs. (30.84) crores and Rs. (68.27) crores respectively in 2025-26 from Rs. (51.11) crores and Rs. (97.34) crores in 2024-25.

In 2025-26, MLL Mobility reported a revenue of Rs. 400.17 crores, a growth of 24.85% from Rs. 320.53 crores in the previous fiscal year. EBITDA and PAT were Rs. 9.92 crores and Rs. 9.82 crores respectively in 2025-26, from Rs. 6.83 crores and Rs. 5.42 crores in 2024-25.

V-Link is engaged in supply chain management services, including air charter operations. During the financial year 2025-26, V-Link earned revenue of Rs. 4.55 crores as compared to Rs. 6.80 crores in the previous year, a decrease of 33.09% year-on-year. V-Link incurred a net loss after tax of Rs. (0.50) crores during the financial year under review as against a net loss of Rs. (0.98) crores in the previous financial year

The following is a table illustrating the breakdown of our consolidated revenue from operations, across the business segments that we operate in, for the periods indicated.

The following is a breakdown of the percentage of revenue from operations with respect to our products and services. Goods Transportation Services continue to be the largest contributor to revenues.

Statements in this Management Discussion and Analysis and in the Annual Report describing our objectives, projections, estimates, expectations, plans or predictions and industry conditions or events are forward-looking statements within the meaning of applicable securities, laws and regulations. Actual results, performance or achievements could differ materially from those expressed or implied. Several factors could make a significant difference to our operations. These include economic conditions affecting demand and supply, Government regulations and taxation, natural calamities and so on, over which we do not exercise any direct control.